This was a long time coming. Highly funded food delivery company Munchery informed its customers that it was going to be shutting down. The news comes a few months after it laid off 30% of its workforce and stopped operating in any cities beyond San Francisco. Munchery had raised a total of $125 million. Its demise is a black mark for all the involved backers, but especially Sherpa Capital and its former head Shervin Pishevar who was an outspoken defender of the company even as its fate became obvious.
A few years after the on-demand business model took Silicon Valley by storm, we’re nearing the end of the chapter on this endeavor. A few successes emerged, like Uber and Lyft; restaurant delivery companies DoorDash and Postmates look relatively strong. Instacart seems to be holding its own against the Amazon/Whole Foods onslaught. But the rest are a battlefield of casualties.